If RapGenius is ruined that easily, RG didn't have a real business to begin with. Their scheme was something that would've certainly triggered Google's ban-hammer sooner or later; the only question was timing. My bet is that RG will reexamine and improve their distribution playbook. I say this because I don't think a16z would invest in a company whose distribution plans consisted solely of SEO.
But you could be correct. Maybe RG is such a fragile company that this nearly inevitable setback is enough to kill them.
p.s. just an FYI: it's generally considered bad form to delete a post that has already garnered responses, especially if those responses are critical.
I, for one, hope the author feels no remorse for their article. It was a fun and interesting article, and they reported the story well.
I continue to hold the belief that if this incident creates a material problem for RG, then RG was already a ticking time bomb. That said, I have plenty of faith that RG will weather the storm, and that perhaps this will be a wake-up call that inspires them to do something more creative and valuable than a spammy link-swap.